A recent report projects South Africa’s DeFi sector will grow to $180 million by 2028, emphasizing increased crypto adoption and regulatory clarity. The study highlights financial inclusion and the need for protective regulations against identified risks. South Africa’s market stands out within the continent’s crypto landscape, having implemented favorable legal measures for decentralized finance.
South Africa’s decentralized finance (DeFi) sector is projected to grow significantly, reaching an estimated $180 million by 2028, according to a report from the Financial Sector Conduct Authority. This report highlights the promising future of DeFi in the country, noting its role in crypto adoption and regulation. As the largest economy in Africa, South Africa leads the region in DeFi development and potential economic impact.
Released on February 20, 2025, the report aims to provide insights for local regulators by surveying crypto asset service providers. It emphasizes the necessity for clearer regulations, particularly concerning the interactions between banks and crypto providers, as DeFi is increasingly influencing the local economy. Currently, the annual revenue for the South African DeFi sector is estimated at $2.8 million, with retail clients comprising the majority of market participants.
The study identifies several factors driving DeFi growth in South Africa, including financial inclusion, low transaction costs, and increased transparency. However, the growth of this sector also brings inherent risks, including issues such as price manipulation, security vulnerabilities, and fraud. The report advocates for improved regulations to address these risks and protect users, coupled with educational initiatives to enhance residents’ financial literacy.
In summary, South Africa’s DeFi sector is on an upward trajectory, expected to reach $180 million by 2028. As the country embraces decentralization and crypto regulation, it underscores the need for protective measures against emerging risks. The evolving landscape presents both opportunities and challenges, positioning South Africa as a pivotal player within Africa’s crypto ecosystem.
Original Source: crypto.news
